Thai PTT mulls consolidation of petchem affiliates

22 April 2009 11:36[Source: ICIS news]

SINGAPORE (ICIS news)--Thailand’s PTT is looking at the possibility of merging its four petrochemical affiliates to generate cost savings and make them stronger entities able to withstand another bout of crisis, a company spokesperson said on Wednesday.

“It has not been identified which pair will be merged. We have to hire an independent financial advisor for this study and we have a lot of options and issues to address as all of them (the affiliates) are listed,” the PTT spokesperson said.

PTT holds a 36% stake in IRPC and 49% stake each in PTTCH, PTTAR and Thai Oil.

“We do not think it will happen anytime soon. If we can firm something up by early next year, we might be able to seek approval from the shareholders during next year’s annual general meeting,” he added.

PTT CEO Prasert Bunsumpun had indicated during a meeting with analysts today that he expects to see a draft merger proposal by the fourth quarter of the year, the spokesperson said.